Figure Technology Solutions (NASDAQ:FIGR) Announces Earnings Results

Figure Technology Solutions (NASDAQ:FIGR) announced its quarterly earnings results on Thursday. The company reported $0.36 earnings per share for the quarter, beating analysts’ consensus estimates of $0.31 by $0.05, FiscalAI reports. The firm had revenue of $283.35 million for the quarter. Figure Technology Solutions had a net margin of 33.45% and a return on equity of 18.90%. The business’s quarterly revenue was up 84.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.34 EPS.

Here are the key takeaways from Figure Technology Solutions’ conference call:

• Q3 loan marketplace volume reached $5.8 billion, up 135% year over year as reported and 107% on a standalone basis. Adjusted EBITDA rose 91% to $164 million, with a 58% margin.
• Figure Connect grew to 74% of marketplace volume, while ecosystem and technology fees more than tripled year over year to about 40% of revenue—supporting management’s shift toward a more capital-light model.
• The Kiavi acquisition adds RTL and DSCR products in a stated $200 billion-plus addressable market; Figure said it had actioned $30 million of cost synergies and expects an unlevered payback period of under four years. Management also reported a 29% increase in funded dollars per loan approval with its AI loan officer assistant.
• For Q4, Figure guided to $6.2 billion–$6.7 billion in marketplace volume and 3.1%–3.4% combined gross take rate, while warning of typical seasonal softness and lower adjusted EBITDA margins. The first full quarter with Kiavi is expected to include $18 million–$23 million in incremental adjusted expenses.
• Figure expanded its share repurchase authorization to $400 million, saying purchases would begin the day after the call and that it may repurchase shares opportunistically beyond the initial program.

Figure Technology Solutions Stock Performance

Shares of Figure Technology Solutions stock traded up $1.46 on Thursday, hitting $25.65. The stock had a trading volume of 9,384,218 shares, compared to its average volume of 4,704,164. Figure Technology Solutions has a twelve month low of $19.54 and a twelve month high of $78.00. The business’s 50 day moving average is $28.71 and its two-hundred day moving average is $32.82. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.22. The stock has a market cap of $4.76 billion, a price-to-earnings ratio of 27.59, a price-to-earnings-growth ratio of 0.35 and a beta of 0.94.

Latest Figure Technology Solutions News

Here’s some of the latest news about FIGR:

• Positive Sentiment: Figure earned $0.36 per share, beating the $0.31 consensus estimate, while revenue reached $283.35 million, up 84% year over year. The earnings beat and strong revenue growth are likely the main positive catalysts. Figure Technology tops Q3 earnings and revenue estimates
• Positive Sentiment: The company entered into a $465 million senior secured revolving credit facility with JPMorgan Chase, adding access to financing that may support its operations and growth. Figure enters into a $465 million revolving credit facility
• Negative Sentiment: Before the earnings release, Zacks Research downgraded its recommendation from “strong buy” to “hold,” while a separate report cited a pessimistic forecast from Keefe, Bruyette & Woods. These views may temper the positive reaction to the results. Zacks Research recommendation

Analyst Ratings Changes

FIGR has been the subject of a number of recent research reports. Wall Street Zen raised Figure Technology Solutions from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Piper Sandler lowered their price objective on shares of Figure Technology Solutions from $75.00 to $65.00 and set an “overweight” rating on the stock in a report on Wednesday, July 15th. Keefe, Bruyette & Woods cut their price objective on shares of Figure Technology Solutions from $45.00 to $37.00 and set an “outperform” rating on the stock in a research report on Monday. Freedom Capital upgraded shares of Figure Technology Solutions to a “strong-buy” rating in a report on Thursday, October 15th. Finally, The Goldman Sachs Group set a $41.00 target price on shares of Figure Technology Solutions in a research report on Wednesday, October 7th. Three investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $52.43.

Insiders Place Their Bets

In other news, insider David Stevens sold 47,650 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $31.38, for a total transaction of $1,495,257.00. Following the sale, the insider directly owned 376,599 shares of the company’s stock, valued at approximately $11,817,676.62. This represents a 11.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Minchung Kgil sold 8,000 shares of the business’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $38.69, for a total value of $309,520.00. Following the completion of the transaction, the chief financial officer directly owned 483,651 shares of the company’s stock, valued at approximately $18,712,457.19. This trade represents a 1.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 26.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in FIGR. Integrated Wealth Concepts LLC acquired a new position in Figure Technology Solutions during the second quarter worth about $47,000. WPG Advisers LLC boosted its stake in shares of Figure Technology Solutions by 98.5% in the 3rd quarter. WPG Advisers LLC now owns 1,640 shares of the company’s stock valued at $47,000 after purchasing an additional 814 shares in the last quarter. GAMMA Investing LLC boosted its stake in shares of Figure Technology Solutions by 176.6% in the 3rd quarter. GAMMA Investing LLC now owns 1,690 shares of the company’s stock valued at $49,000 after purchasing an additional 1,079 shares in the last quarter. Advisors Asset Management Inc. bought a new stake in shares of Figure Technology Solutions during the 3rd quarter valued at approximately $53,000. Finally, SBI Securities Co. Ltd. grew its holdings in shares of Figure Technology Solutions by 157.4% during the 3rd quarter. SBI Securities Co. Ltd. now owns 1,974 shares of the company’s stock valued at $57,000 after purchasing an additional 1,207 shares during the last quarter.

Figure Technology Solutions Company Profile

Figure Technology Solutions is a financial technology company that develops blockchain-based platforms for lending and capital markets. Its technology is designed to digitize and streamline financial transactions, including loan origination and the trading of financial assets. The company’s offerings include home equity financing and technology for financial institutions and other lending partners. Figure also operates digital marketplaces and provides services supporting the issuance and transfer of assets on the Provenance Blockchain.